, but 10-year loan restriction seems to encourage singles
The Home Improvement Programme (HIP) has been selected for over 29,000 HDB flats in its latest round. According to a press release by the Housing and Development Board (HDB) on Feb 16, a total of $407 million will be allocated for the upgrading works.
The selected flats are located in various areas including Bedok, Bukit Batok, Bukit Merah, Bukit Panjang, Chua Chu Kang, Hougang, Jurong West, Pasir Ris, Queenstown, Sengkang, Tampines, Toa Payoh, and Woodlands. With this round of HIP, the scheme has now been extended to 494,000 flats, which is equal to 9 out of 10 eligible flats. As per the Minister for National Development, Desmond Lee, close to 381,000 flats have undergone upgrades since the HIP’s introduction in 2007.
The HIP was created for the purpose of providing assistance to flat owners in addressing common maintenance issues that arise due to wear and tear in older flats. The government fully funds the essential improvements, such as repairing spalling concrete and ceiling leakages, to ensure the basic safety needs of residents. However, flat owners can opt for optional improvements, such as upgrading existing bathrooms and toilets, installing a new entrance door and grille gate, and a new refuse chute hopper. The government subsidises these optional improvements, and depending on the flat type, Singapore citizen households only have to pay as low as 5% of the cost.
Since the year 2012, the HIP has also been offering the Enhancement for Active Seniors (Ease) programme. Under this scheme, flat owners can opt to install senior-friendly fittings, including grab bars, ramps, and slip-resistant treatment to toilet and bathroom tiles. The government covers up to 95% of the costs for Singapore citizen households.
Since its launch, the government has allocated around $4 billion for HIP and $150 million for Ease, as of March 31, 2014, according to HDB. For those interested in HDB properties, they can check out the latest listings on “Ask Buddy.” The section provides information on HDB resale prices, past transactions, HDB loans, and price trends of HDB, condos, and landed properties.
As international investors, having a clear understanding of the regulations and limitations surrounding property ownership in Singapore is crucial. Unlike landed properties, where ownership rules are more stringent, foreigners can typically purchase condos with more ease. However, they are subjected to the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property acquisition. Despite this extra expense, the stability and potential for growth in the Singapore real estate market remains a strong draw for foreign investors. Interested buyers can visit Condo for more information on available properties.
To conclude, the HDB resale prices are projected to increase by 4% to 6% in 2025, as per OrangeTee. Moreover, for those looking to purchase a five-room flat in Toa Payoh, a 13-year-old flat is available for $1.3 million. The February 2025 BTO will have fewer flats available compared to the October BTO, and the 10-year loan restriction aims to encourage singles to purchase HDB flats.